The cost of internet-connected sensors is coming down: Many IoT devices rely on multiple sensors to monitor the environment around them. The cost of these sensors declined 50% in the past decade, according to Goldman Sachs. We expect prices to continue dropping at a steady rate, leading to an even more cost-effective sensor.

A lot more money is being poured into the IoT:Large companies like Dell have begun to aggressively open IoT divisions and innovation labs. There have also been a range of IoT acquisitions including Google acquiring Nest and Intel acquiring Basis. In addition, innovative IoT startups, such as IoT cloud-platform provider Electric Imp and smart plug maker Zuli, have received a combined $70 million in funding just this summer.

Expanded internet connectivity: The International Telecommunication Union (ITU) estimates that currently 40% of the global population is connected to the internet and by 2019, roughly 57% will be connected. This increase in connectivity will lead to a larger base of individuals interested in purchasing IoT devices.